Meet the Monster Stock That Has Jumped 350% in 2025 and Can Still Soar Higher

Core Viewpoint - The surge in artificial intelligence (AI) infrastructure stocks is driven by the rapid expansion of data center capacity, with companies like CoreWeave and Nebius Group experiencing significant gains in 2025 due to multibillion-dollar contracts for dedicated AI cloud computing capacity [1] Company Performance - Applied Digital has seen its stock price increase by nearly 350% in 2025, reflecting its strong position in the data center market and potential for long-term growth [2] - The company reported an 84% year-over-year revenue increase to $64.2 million in the first quarter of fiscal 2026, driven by high demand for AI-optimized data center capacity [4] - Applied Digital's revenue from tenant fit-out services for CoreWeave amounted to $26.3 million, highlighting the importance of these initial contracts despite their low-margin nature [5] Strategic Partnerships - Applied Digital has expanded its partnership with CoreWeave to cover the full 400 megawatts (MW) of capacity at its Polaris Forge One complex, with a total leasing contract valued at $11 billion over 15 years [6] - CoreWeave has requested Applied Digital to perform the fit-out for the first 100 MW of the 400 MW campus, indicating potential for further expansion of this partnership [6] Future Outlook - The company is positioned for significant future revenue through lease agreements following the completion of tenant fit-outs, suggesting a robust revenue pipeline [5][6] - Despite the current high valuation of Applied Digital's stock, its growth potential may justify this valuation as the business continues to expand [7]